Southern Gas Corridor

Transcription

1 Southern Gas Corridor

2 SOCAR Midstream Operations Company Overview SOCAR Midstream Operations established as an affiliate Company of SOCAR, under the direction of the President of the Azerbaijan Republic and SOCAR President to represent Azerbaijan's strategic shareholding and interests in onshore oil and gas export pipelines and facilities including: Providing shareholder governance of the South Caucasus Pipeline (SCP), Baku Tbilisi Ceyhan (BTC), Trans Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP); Facilitating the commercial and technical future expansion of the SCP system (SCPFX); Starting from 1st of May 2015 SOCAR Midstream Operations Ltd. fulfils the role with respective obligations and activities as Commercial Operator of SCPC. The Commercial Operatorship was transitioned from STATOIL, who was holding this role since 2007.

3 Overview of the Southern Gas Corridor The SGC will link resources in the Caspian to markets in Europe for the first time The SGC will provide a new, reliable source of gas to help diversify Europe s energy mix. Over 1 trillion cubic meters of natural gas and in excess of 2 billion barrels of condensate. One of the largest energy projects anywhere in the world - a network of 3,500 km of pipelines: SCPX, TANAP, TAP $40 bn of investment, 30,000+ jobs 16 bcma of gas from Shah Deniz Stage 2: 6 bcma to Turkey, 10 bcma to European buyers Contracts already signed with 11 gas buyers Construction is currently going on throughout the project, which transits 6 countries 3

4 Southern Gas Corridor Projects Overview The Southern Gas Corridor Consists of 4 Projects The Shah Deniz gas-condensate field (Stage 1 SD1 & Stage 2 SD2 ) The South Caucasus Pipeline ( SCP ) and its Expansion ( SCPX ) through Azerbaijan and Georgia to Turkey The construction of the Trans-Anatolian Pipeline ( TANAP ) through Turkey to Greece The construction of the Trans-Adriatic Pipeline ( TAP ) through Greece, Albania and the Adriatic Sea to Southern Italy 3 The SGC also envisages the construction of Interconnector Greece-Bulgaria ( IGB ) and possibly Ionic Adriatic Pipeline ( IAP )

5 The Southern Gas Corridor AUSTRIA SLOVAKIA HUNGARY SLOVENIA CROATIA ROMANIA ITALY BOSNIA HERZEGOVINA ALBANIA SERBIA MONTENEGRO F.Y.R.O.M. BULGARIA BLACK SEA GEORGIA CASPIAN SEA GREECE AZERBAIJAN TURKEY MEDITERRANEAN SEA Shah Deniz Field South Caucasus Pipeline Expansion (SCPX) Trans Anatolian Pipeline (TANAP) 5 Trans Adriatic Pipeline (TAP) Interconnector Greece Bulgaria (IGB)

6 SHAH DENIZ GAS CONDENSATE FIELD (SD1 & SD2) SOUTH CAUCASUS PIPELINE (SCP) AND ITS EXPANSION (SCPX) TRANS-ANATOLIAN PIPELINE (TANAP) TRANS ADRIATIC PIPELINE (TAP) Gas and condensate initially in place: 1.0 tcm of gas and 2.0 billion barrels of condensate SD1 existing capacity: 10.9 bcma of gas and 50 mbd of condensate SD2 will expand production by another 16 bcma of gas and 105 mbd of condensate per day SD2 total project costs: US$22.7 billion, out of which US$17.9 billion has been spent as of June 2018 Overall progress to 1st Gas is 100% as of the end of June 2018 As planned, the gas deliveries to Turkey commenced on 30 June NICO Lukoil TPAO 19.0% Petronas 15.5% SOCAR (1) BP 28.8% SGC 6.7% SCP started gas deliveries to Georgia and Turkey in Current capacity: 7.41 bcma, length: 692 km SCPX will expand capacity to 23.4 bcma through a new pipline that runs alongside SCP for 489 km. SCP s capacity may be expanded further up to 31 bcma if needed. SCPX total project costs: US$4.7 billion, out of which over US$4.2 billion has been spent as of June 2018 Major contracts awarded and about 98.5% of the overall scope is completed as of the end of June As planned, the gas deliveries to Turkey commenced on 30 June NICO Lukoil TPAO 19.0% Petronas 15.5% SOCAR (1) BP 28.8% SGC 6.7% Capacity: Initial 16 bcma, expandable to 31 bcma Length: km plus 17.5 km long parallel subsea pipeline in Dardanelles Operation start: 2018 Total project costs : US$8 billion, out of which US$5.5 billion has been spent as of the end of June ,781.7 km of main pipeline had been welded and 1,709.6 km of pipe lowered in trenches as of the end of June 2018; TANAP overall progress equals to circa 95.3% as of the end June 2018; Commissioning procedure was started at the end of December 2017 and was finished on 30 June TANAP Opening Ceremony was held on 12 June st Commercial Gas introduction to the pipeline took place on 30 June BOTAS 30.0% BP 12.0% SGC 58.0% Capacity: Initial 10 bcma, expandable to 20 bcma Length: 878 km Operation start: 2020 Total project costs: EUR 4.5 billion, out of which EUR 3.1 billion has been spent as of the end of June 2018 Welding activities are progressing well in Greece (528.3 km welded and km lowered into trenches) and Albania (189.3 km welded and km lowered into trenches), licencing process is ongoing in Italy; TAP overall progress is circa 76.4% as of the end of June 2018; 2020: start of operations Enagas 16.0% Fluxys 19.0% Axpo 5.0% SNAM 20.0% BP 20.0% SGC 20.0%

7 7 The Southern Gas Corridor

8 South Caucasus Pipeline Expansion - SCPX The expansion of the South Caucasus Pipeline is part of the Shah Deniz Full Field Development project. Expansion involves pipeline loop in Azerbaijan and shorter loop in Georgia along with two compressor stations. The new pipeline will be connected with TANAP at Georgian-Turkish border and will serve for further delivery of natural gas to European market through TAP. This will approximately triple the gas volumes exported through the pipeline to circa 23 bcma.

9 South Caucasus Pipeline Expansion - SCPX A total length of the new pipeline 489 km - in Azerbaijan 424 km; - In Georgia 63 km; - TANAP interconnection 2 km; Diameter of the pipeline: 48 inches; A total budget of the project: $4.7 bln; Total Project man-hours: The construction has started in 2014 and is planned to be completed by March The SCPX overall progress is 98.5%; SCPX First Gas scope (CSG1 & Area 81) construction completed. Site is ready for introduction of hydrocarbons. Commissioning of subsystems is in progress. CSG2 construction progress stands at 92.7%.

10 South Caucasus Pipeline Future Expansion - SCPFX SCPFX is included into the list of key energy infrastructure projects known as Projects of Common Interests (PCIs) since 2013 and may benefit from enhanced access to financial support from European Union institution. SCPFX is a further expansion of existing SCP system in order to fulfil the potential demand for additional export capacities of natural gas producers within the Caspian Sea. The SCPFX project is in the early concept phase with a number of options under consideration, the optimal case will be driven by the explicit request of future gas shippers. The design of SCPFX will be based on the final SCP system, which is now undergoing expansion.